The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label arab spring. Show all posts
Showing posts with label arab spring. Show all posts

Friday, November 18, 2016

Strong dollar about to trigger a massive dumping of treasuries and dollar reserves by foreign holders of U.S. debt

Few people actually connected the dots six years ago as to the real reasons behind the Arab Spring uprisings in places like Yemen, Egypt, and elsewhere in the Middle East.  Politicians and a lazy mainstream media wanted us to focus on how it was due to people wanting to rise up against tyrannical dictators, but the truth of the matter was that the civil unrest was intrinsically tied to the dollar, and in nations being unable to afford to purchase commodities such as wheat because of how strong the reserve currency was in relation to their own.

Image result for arab spring bread helmet
(Egytian protester wearing a bread helmet)

When grain prices spiked in 2007-2008, Egypt's bread prices rose 37%. With unemployment rising as well, more people depended on subsidised bread - but the government did not make any more available. Egypt's annual food price inflation continued and had hit 18.9% before the fall of President Mubarak. 
Fifty per cent of the calories consumed by Egyptians originate outside its borders. Egypt is the world's largest wheat importer, and no country in the region (except for Syria) produces more than a small fraction of the wheat it consumes. Should the global markets be unable to provide a country's need, or if there are not enough funds available to finance purchases and to offer price support, then the food of the poor will become inaccessible to them. - Guardian
Despite the fact that the entire world was involved in the Great Recession, and most of their economies did not have access to strong central banks able to implement ZIRP and QE programs, it did not take the dollar exploding over 100 on the dollar index to cause financial havoc to one or more countries, but only a move from 72 to 84 to be just enough for countries deep in recession to be unable to buy dollars so they could purchase over-inflated commodities to feed their peoples.


In the past 30 years there have been three times when the dollar was over 100 on the index, and on every occasion a financial or monetary crisis emerged someone in the world.  In the 1980's it was the Mexican Peso crisis, and in the late 1990's it was both the Argentinian and Asian financial crises.

And now in November of 2016, and immediately following the election of Donald Trump as President, the dollar has skyrockted upwards and has crossed 100 on the index for the first time in 13 years.  And in that short amount of time since Nov. 8 we have seen India experience a monetary meltdown, and China see its currency strengthen to its highest levels in a decade.

However, both India and China are not Argentina, Egypt, Mexico, and Thailand.  And unlike these second world economies who were unable to withstand the reserve currency's pressure on their own money back 20 and 30 years ago, the world's second and seventh largest economies do have a form of ammunition to respond to the dollar's move and counter the dollar with its own medicine...

That of their dollar reserves.  And China appears ready now to bring heavy pain to the U.S. bond market by dumping hundreds of billions, if not trillions of dollars worth to protect their own economy.
Asked about when the Yuan may cross the psychological barrier, a PBOC advisor told Reuters that "I don't think the breaking of 7 is imminent. We may have to wait until next year." Actually, at this rate, "breaking" of 7 may happen as soon as next week, to which he adds :"If the pace of depreciation is too fast, if it hit 7 before the end of this year, the central bank will control it." 
And that's when the liquidation of Chinese USD-denominated reserves begins in earnest, among all those other measures the PBOC implemented a year ago when the market was far less sanguine about the Chinese devaluation: 
The policy insiders said the central bank was likely to intervene in currency markets and enforce capital controls to slow the rate of decline in the yuan. 
As we expected, the intervention has already started:
traders said large Chinese state banks had offered dollars in the domestic currency market on Thursday in an apparent effort to slow down the depreciation of the yuan. 
They said there had been no sign of state dollar selling in previous sessions. 
Another way of saying "offering dollars" is selling US assets. - Zerohedge
Once China begins dumping more of their dollars in earnest, and the bond rates for Treasuries start to spike arithmetically or even exponentially, it will open the floodgates for everyone else to dump their $14 trillion in foreign held dollars where the ramifications of them returning to the U.S. will be catastrophic.  And all that inflation that has been exported for decades to the rest of the world will come back in one sudden wave to prices and consumers, and might very easily spell the end of the American century, as well as dollar hegemony as the global reserve currency.

Tuesday, October 25, 2016

As the dollar strengthens and the Yuan weakens, China continues its heavy buying spree of physical gold in expectation of financial crisis

Six years ago, the Middle East erupted into protests that would become known as the Arab Spring.  And while politicians in the U.S. tried to spin this event as being a revolt against 'tyrannical governments', the reality was that these and many other nations were in bondage to a stronger dollar which made it impossible for them to afford to buy wheat and other commodities to feed their people at the height of the Great Recession.

With the U.S. dollar being the sole reserve currency in which all nations must exchange their money into to be able to purchase commodities on the international market, extreme changes to the dollar have historically been the catalyst for monetary crises elsewhere.  And two of the best examples occurred in both the 1980's and 1990's when Paul Volker's interest rate hike led to a Latin American debt crisis, and the stronger dollar during the height of the Dot.com boom triggered a currency crisis in Southeast Asia.

The U.S. dollar is getting too strong for some countries. Early warning signs suggest another emerging markets currency crisis. 
Currencies in Southeast Asia are at their worst points since the region's last financial crisis in the late 1990s. Mexico and South Africa's exchange rates are at their lowest levels ever compared to the dollar, according to Capital Economics. 
The dollar's gains should make history nerds shake in their boots. Its rally in the early 1980s helped trigger Latin America's debt crisis. Fifteen years later, the greenback surged quickly again, causing Southeast Asian economies, such as Thailand, to collapse after a run on the banks ensued. 
A large scale currency crisis could be a real hit to the global economy, even the United States. The world is a lot more integrated today than it was in the 1980s and 1990s. - Money.CNN
However, unlike the way the strong dollar effected currencies in second and third world economies two and three decades ago, this new move for the dollar over the past six months is causing financial problems to first world nations such as the UK, the Eurozone, and even the second largest economy in the world, China.


In response to this, China is once again ramping up their gold buying, especially since the price was slammed down by over $70 earlier this month.  And in addition to the latest report of over $350 billion in U.S. Treasuries being sold back to the United States over the past few months, those dollar reserves are in part the currency being used to swallow up Western gold supplies.

SWISS GOLD EXPORTS TO CHINA HIT HIGHEST SINCE JANUARY

As the dollar once again nears 100 on the weighted index, and the British Pound, Chinese Yuan, and Euro all devalue to in some cases historic levels, the chances of another regional or global monetary crisis comes to the fore, and unfortunately at a time when the world looks to already be in a new economic recession.

Friday, January 15, 2016

Should we get ready for a Canadian Spring?

Back in 2011, what would become known as the Arab Spring emerged in Middle Eastern countries like Tunisia, Egypt, and Yemen over the inability of the people to have access to affordable food that was primarily imported into their nations through world markets.  At the heart of the problem was the artificial strength of the U.S. dollar, and the need to buy these dollars to purchase foodstuff commodities.
But since the Arab Spring was a phenomenon was back then tied to 2nd world nations where wages and net worth were relatively poor, the question to ask now is, could this same type of uprising take place in a 1st world nation as well?

Read more on this article here...

Monday, August 18, 2014

Ferguson, MO has now emerged into the Negro Spring

There are always symbols in specific times of history that speak volumes to both current and future populations.  An innocuous movie from a decade ago called V for Vendetta resurrected the well known myth of patriot and anarchist Guy Fawkes, and brought the history of defiance and rebellion front and center into the discourse of American thought and rhetoric.

But an even greater global phenomenon that was spawned within the past five years is now resonating in the captured town of Ferguson, MO, where the predominantly black population has chosen to call their movement the Negro Spring, in honor of the Arab Spring which helped bring down multiple governments in the Middle East.



Read more on this article here...

Wednesday, April 4, 2012

Man in Greece commits suicide in front of Parliament over debt measures

Greece is now experiencing their own 'Arab Spring', but this one is starting off with a bang... literally.  An elderly man who determined he was at the point of no longer being able to pay off debts and did not wish to scrounge through garbage cans for food as half the population is already doing, shot himself in public, and right in from of the very Parliament building that sold the Greek people for a Euro central bank bailout.


Picture courtesy of Newsbeast.gr

...a 77 year old Greek has killed himself in broad daylight on Athens' symbolic and inappropriately named Syntagma square to protest the "occupier government" and not wanting to be a burden to his child. As Kathimerini reports, "an elderly man committed suicide on Friday morning in Syntagma Square in Athens, in front of Parliament. Some reports said witnesses claimed the man shouted «I don't want to leave debts to my children,» before he shot himself in the head. - Zerohedge

With Americans now at the 45% level of reliance on the government for food, how long until the economic pressures of our high unemployment and growing debt bubbles in cities and in Washington will move the people here to protest in ways that could pale to the Greeks and the Arabs.